Adani Transmission Ltd, one of India’s leading power transmission companies, has announced that its board of directors has approved a proposal to raise funds through the issuance of fresh equities. The decision was made at the board’s meeting on Saturday and is aimed at raising up to ₹8,500 crore.
Informing Indian stock market’s bourses about the fund raise via fresh equity issuance, Adani Transmission Ltd said, “This is with reference to our letter dated May 10, 2023. We wish to inform you that the board of directors of the Company (the “Board”), at its meeting held today, i.e. May 13, 2023, commenced at 12:00 noon and concluded at 12.45 p.m., has inter-alia approved raising of funds by way of issuance of such number of equity shares having face value of ₹10 each of the Company (“Equity Shares”) and / or other eligible securities or any combination thereof (hereinafter referred to as “Securities”), for an aggregate amount not exceeding ₹8,500 Crores (Rupees Eight Thousand Five Hundred Crores only) or an equivalent amount thereof by way of Qualified Institutional Placement (“QIP”) or other permissible mode in accordance with the applicable laws, subject to the receipt of the necessary approvals including the approval of the members of the Company and other regulatory / statutory approvals, as may be required.”
As stated the issuance of fresh equities is subject to the approval of the company through a postal ballot process. The company will need to seek the approval of its shareholders for the issuance of the new shares.
Adani Transmission Ltd is a subsidiary of the Adani Group, which is a leading Indian multinational conglomerate with interests in various sectors, including energy, infrastructure, logistics, and agribusiness. The company operates a large network of power transmission lines across India and has been expanding its operations in recent years.
The fund raise proposal comes at a time when Adani Transmission is looking to invest in new projects and expand its business. The company has already made significant investments in recent years, including the acquisition of Reliance Infrastructure’s transmission assets in Mumbai.
Adani Transmission has been focusing on expanding its portfolio of renewable energy projects, with a particular focus on solar power. The company has been investing in new solar projects across India and has set a target of achieving 25 GW of renewable energy capacity by 2025.
The company’s decision to raise funds through the issuance of fresh equities is expected to provide it with the capital it needs to continue investing in new projects and expanding its business. The postal ballot process will provide shareholders with an opportunity to approve or reject the proposal, ensuring that the decision is made in a transparent and democratic manner.
Overall, the board’s decision to approve the fund raise proposal is expected to be a positive development for Adani Transmission and its shareholders, as it will provide the company with the capital it needs to continue growing and expanding its operations.